February sees weaker business, job growth in BD
NN Online:
Bangladesh saw a slowdown in new business and employment growth in February compared to January, as indicated by the latest Purchasing Managers’ Index (PMI) report.
The Metropolitan Chamber of Commerce and Industry (MCCI), Dhaka, alongside Policy Exchange Bangladesh (PEB), released the PMI for February on Sunday, highlighting a decline of 1.1 points from the previous month, bringing the index to a slower expansion rate of 64.6.
This dip in PMI is attributed to slower growth in the construction and services sectors, while agriculture and manufacturing showed stronger expansion, the report revealed, reports UNB.
The PMI, an initiative by MCCI and Policy Exchange, aims to provide timely insights into Bangladesh’s economic health, helping businesses, investors, and policymakers make informed decisions.
It is developed with support from the UK government and technical backing from the Singapore Institute of Purchasing and Materials Management (SIPMM).
Sector-wise performance:
Agriculture: The agriculture sector reported its fifth consecutive month of expansion, with acceleration in the rate of growth. This was reflected in the increases in new business, business activity, input costs, and order backlogs. But the employment index showed a slower contraction.
Manufacturing: The manufacturing sector posted its sixth month of expansion at a faster rate, with notable growth in new orders, factory output, input purchases, and supplier deliveries. Nonetheless, the sector recorded slower expansion in new exports, finished goods, imports and employment. The order backlogs index showed a faster contraction.
Construction: The construction sector recorded its third consecutive month of expansion, but at a slower pace. There was a deceleration in new business and construction activity, though input costs showed a faster expansion. The employment index saw a return to expansion, while the order backlogs index showed a slower contraction.
Services: The services sector expanded for the fifth consecutive month but at a slower rate. This was evident in slower growth in new business, business activity, and employment. The order backlogs index reverted to contraction, while the input costs index showed a faster increase.
Outlook and challenges
M Masrur Reaz, chairman and CEO of Policy Exchange, noted that Bangladesh’s PMI readings indicate a sustained expansion for the fifth month, driven by continued growth in exports and a seasonal uptick in agriculture. However, slower expansion was recorded in construction and services.
He also highlighted concerns over weak business confidence, citing sluggish demand, energy disruptions, and ongoing protests.
Reaz emphasised that a sustained recovery will depend on improved law and order, political consensus on the election roadmap, and the expedited implementation of key reforms.